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Gary Dessler - Fundamentals of Human Resource Management, Global Edition-Pearson (2019).pdf
1. Fundamentals
of
Human
Resource
Management
Dessler
FIFTH
EDITION
FIFTH EDITION
Gary Dessler
Fundamentals of
Human Resource Management
GLOBAL
EDITION
GLOBAL
EDITION
G
LO
B
A
L
EDITION
This is a special edition of an established title widely used by colleges and
universities throughout the world. Pearson published this exclusive edition
for the benefit of students outside the United States and Canada. If you
purchased this book within the United States or Canada, you should be aware
that it has been imported without the approval of the Publisher or Author.
Human resource management is changing fast, and all managers need a strong
foundationinhumanresourceconceptsandtechniques.Basedontheprinciplethat
strategic human resource management must build the employee competencies
and behaviors that achieve companies’ strategic goals, Fundamentals of Human
Resource Management presents the skills and knowledge that managers need to
perform their day-to-day responsibilities.
The fifth edition includes the following tools and features to cover the latest
developments and help relate major concepts to real businesses:
• NEW—Trends Shaping HR features highlight how managers today accomplish
their HR tasks.
• NEW—The unique HR and the Gig Economy features show how companies
manage gig workers’ HR needs.
• A unique Strategy Model provides a “big picture” view of strategic human resource
management.
• A range of real-world cases and practical tools, including HR as a Profit Center,
HR in Practice, Diversity Counts, HR Tools for Line Managers and Small
Businesses, and HR Practices Around the Globe, helps to develop students’
work and employability skills.
• Practical examples and advice have been provided in every chapter on how managers
can build engaged employee work teams and companies.
Also available for this book is MyLab Management, an optional suite of course-
management and assessment tools that allow instructors to set and deliver courses
online, tailored to the needs of their students.
Dessler_05_1292261900_Final.indd 1 12/01/19 1:23 PM
2. MyLabTM
Management is an online homework,
tutorial, and assessment program constructed to work
with this text to engage students and improve results.
It was designed to help students develop and assess
the skills and applicable knowledge that they will need
to succeed in their courses and their future careers.
See what more than 25,000 students had to say
about MyLab Management:
“[MyLab Management] is great. I can access all of the
information needed for the course under the home
screen. It’s easy to navigate and includes helpful videos
and tips to help me better understand the course.”
— Sheena Dunio,
Student at Southern New Hampshire University
Personal Inventory Assessments is a collection of
online exercises designed to promote self-reflection
and engagement in students, enhancing their ability to
connect with management concepts. These assessments
help develop professionalism and awareness of oneself
and others, giving students the skills necessary for their
future career.
Engage, Assess, Apply and Develop
Employability Skills with MyLab Management
80%
of students said it
helped them earn
higher grades on
homework, exams,
or the course
*Source: 2016 Student Survey, n 490
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3. Pearson eText enhances student
learning—both in and outside the class-
room. Take notes, highlight, and bookmark.
Accessible anytime, anywhere via MyLab
or the app.
The MyLab Gradebook offers an easy way for students and
instructors to view course performance. Item Analysis allows
instructors to quickly see trends by analyzing details like the
number of students who answered correctly/incorrectly, time
on task, and median time spend on a question by question basis.
And because it’s correlated with the AACSB Standards, instructors
can track students’ progress toward outcomes that the organiza-
tion has deemed important in preparing students to be leaders.
92% 93% 94%
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of students would tell their instructor
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“I was able to find myself actually learning at home rather than memorizing things for a class.”
— Katherine Vicente, Student at County College of Morris
5. Gary Dessler
Florida International University
FIFTH EDITION
GLOBAL EDITION
Fundamentals of
Human Resource Management
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
7. 5
PART 1 INTRODUCTION 25
Chapter 1 Managing Human Resources Today 25
Chapter 2 Managing Equal Opportunity and Diversity 51
Chapter 3 Human Resource Strategy and Performance 82
PART 2 STAFFING: WORKFORCE PLANNING AND
EMPLOYMENT 110
Chapter 4 Job Analysis and Talent Management 111
Chapter 5 Personnel Planning and Recruiting 143
Chapter 6 Selecting Employees 178
PART 3 TRAINING AND HUMAN RESOURCE DEVELOPMENT 219
Chapter 7 Training and Developing Employees 220
Chapter 8 Performance Management and Appraisal Today 255
Chapter 9 Managing Careers 284
PART 4 COMPENSATION AND TOTAL REWARDS 321
Chapter 10 Developing Compensation Plans 322
Chapter 11 Pay for Performance and Employee Benefits 359
PART 5 EMPLOYEE AND LABOR RELATIONS 396
Chapter 12 Maintaining Positive Employee Relations 397
Chapter 13 Labor Relations and Collective Bargaining 426
Chapter 14 Improving Occupational Safety, Health, and Risk Management 457
PART 6 SPECIAL TOPICS IN HUMAN RESOURCE MANAGEMENT 492
Module A Managing HR Globally 492
Module B Managing Human Resources in Small and Entrepreneurial Firms 509
Appendix 526
Glossary 538
References 547
Name Index 588
Subject Index 591
B R I E F C O N T E N T S
8. 6
Preface 16
Acknowledgments 22
About the Author 23
PART 1 INTRODUCTION 25
Chapter 1
Managing Human Resources
Today 25
What Is Human Resource Management? 26
Why is Human Resource Management Important to
All Managers? 27
Line and Staff Aspects of HRM 29
Line versus Staff Authority 29
Line Managers’ Human Resource Management
Responsibilities 29
The Human Resource Department 29
The Trends Shaping Human Resource
Management 31
Workforce Demographics and Diversity Trends 31
Trends in How People Work 32
■
■ HR AND THE GIG ECONOMY: On-Demand
Workers 32
Globalization Trends 33
Economic Trends 34
Technology Trends 35
■
■ HR AS A PROFIT CENTER: Boosting Customer
Service 37
The New Human Resource Management 37
Distributed HR and the New Human Resource
Management 37
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 38
HR and Performance 38
■
■ HR IN PRACTICE: Does Performance Trump
Equity? 39
HR and Employee Engagement 40
HR and Strategy 40
HR and Sustainability 41
HR and Ethics 42
The New Human Resource Manager 42
HR and the Manager’s Skills 43
HR Manager Certification 43
HR and the Manager’s Human Resource
Philosophy 43
The Plan of This Book 45
The Chapters 45
Review 46
Summary 46 • Key Terms 47 • Discussion
Questions 47 • Individual and Group
Activities 47
APPLICATION EXERCISES 48
HR IN ACTION CASE INCIDENT 1: Is Human Resource
Management Becoming Greener? 48
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 49
Experiential Exercise: HR and “The Profit” 50
Chapter 2
Managing Equal Opportunity
and Diversity 51
Equal Employment Opportunity Laws 52
Background 52
Equal Pay Act of 1963 52
Title VII of the 1964 Civil Rights Act 53
Executive Orders 53
Age Discrimination in Employment Act of 1967 53
Vocational Rehabilitation Act of 1973 54
Pregnancy Discrimination Act of 1978 54
Federal Agency Uniform Guidelines on Employee
Selection Procedures 54
Selected Court Decisions regarding Equal
Employment Opportunity (EEO) 54
The Civil Rights Act of 1991 55
The Americans with Disabilities Act 56
Uniformed Services Employment and Reemployment
Rights Act 57
Genetic Information NondiscriminationAct of 2008 57
State and Local Equal Employment Opportunity
Laws 58
Religious and Other Types of Discrimination 58
Trends in Discrimination Law 58
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES 59
Sexual Harassment 60
Diversity Counts 62
■
■ HR PRACTICES AROUND THE GLOBE:Applying
Equal Employment Law Abroad 64
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 64
Defenses Against Discrimination
Allegations 65
The Central Role of Adverse Impact 65
■
■ HR IN PRACTICE: How to Use the Standard
Deviation Rule in Practice 66
Bona Fide Occupational Qualification 68
Business Necessity 69
Building Your Management Skills: Illustrative
Discriminatory Employment Practices 69
Recruitment 70
Selection Standards 70
Sample Discriminatory Promotion,Transfer, and
Layoff Procedures 71
C O N T E N T S
9. CONTENTS 7
The EEOC Enforcement Process 72
Processing a Discrimination Charge 72
Voluntary Mediation 72
Mandatory Arbitration of Discrimination Claims 72
Diversity Management and Affirmative
Action 74
Diversity’s Barriers and Benefits 74
Managing Diversity 75
Equal Employment Opportunity versus Affirmative
Action 76
Reverse Discrimination 76
Review 77
Summary 77 • Key Terms 78
• Discussion Questions 78 • Individual and
Group Activities 78
APPLICATION EXERCISES 79
HR IN ACTION CASE INCIDENT 1:The Emiratization
of HRM Practices at a Petroleum Company 79
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 80
Experiential Exercise:The Interplay of Ethics and Equal
Employment 80
Chapter 3
Human Resource Strategy and
Performance 82
The Strategic Management Process 83
■
■ HR PRACTICES AROUND THE GLOBE:The
Shanghai Portman’s New Human Resource
Management Strategy 83
The Basic Management Planning Process 84
What Is Strategic Planning? 85
The Strategic Management Process 86
Types of Strategies 88
Managers’ Roles in Strategic Planning 90
Strategic Human Resource Management 90
What Is Strategic Human Resource
Management? 91
■
■ HR IN PRACTICE:The Zappos “WOW”Way 92
■
■ HR AND THE GIG ECONOMY: Integrating HR into
the Employer’s Gig Worker Strategy 92
Sustainability and Strategic Human Resource
Management 93
Strategic Human Resource Management Tools 93
HR Metrics and Benchmarking 95
Types of Metrics 95
Benchmarking 95
Strategy and Strategy-Based Metrics 96
Workforce/Talent Analytics and Data Mining 97
■
■ HR AS A PROFIT CENTER: Using Workforce/
Talent Analytics 97
Using HR Audits 99
Evidence-Based HR and the Scientific Way of
Doing Things 99
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES 100
Building High-Performance Work Systems 101
High-Performance Human Resource Policies and
Practices 101
Employee Engagement and Performance 102
Why Is Employee Engagement Important? 102
The Employee Engagement Problem 103
What Can Managers Do to Improve Employee
Engagement? 103
How to Measure Employee Engagement 103
Employee Engagement Guide For
Managers 104
How Kia Motors (UK) Improved Performance
with an HR Strategy Aimed at Boosting Employee
Engagement 104
The Challenges 104
The New Human Resource Management Strategy 104
The Results 105
Review 106
Summary 106 • KeyTerms 107 • Discussion
Questions 107 • Individual and GroupActivities 107
APPLICATION EXERCISES 108
HR IN ACTION CASE INCIDENT 1: Siemens Builds a
Strategy-Oriented HR System 108
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 109
Experiential Exercise: Developing an HR Strategy for
Starbucks 109
PART 2 STAFFING: WORKFORCE PLANNING
AND EMPLOYMENT 110
Chapter 4
Job Analysis and Talent
Management 111
The Talent Management Process 112
Improving Performance through HRIS 113
The Basics of Job Analysis 113
What Is Job Analysis? 113
Uses of Job Analysis Information 114
Steps in Job Analysis 115
■
■ HR AS A PROFIT CENTER: Boosting Productivity
through Work Redesign 116
Methods for Collecting Job Analysis
Information 118
The Interview 118
Questionnaires 119
Observation 122
Participant Diary/Logs 122
Quantitative Job Analysis Techniques:The Position
Analysis Questionnaire (PAQ) 122
Electronic Job Analysis Methods 123
Writing Job Descriptions 123
Job Identification 123
Job Summary 126
Relationships 126
Responsibilities and Duties 126
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 127
Standards of Performance and Working
Conditions 129
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES: Using O*NET 130
10. 8 CONTENTS
Writing Job Specifications 132
Specifications for Trained versus Untrained
Personnel 133
Specifications Based on Judgment 133
■
■ HR AND THE GIG ECONOMY: Do Gig Workers
Need Job Specifications? 133
Job Specifications Based on Statistical Analysis 134
The Job-Requirements Matrix 134
Employee Engagement Guide for
Managers 134
Job Specifications and Employee Engagement 134
The Employee Engagement Manager’s Job
Description 135
Using Competencies Models 136
■
■ HR PRACTICES AROUND THE GLOBE: Daimler
Alabama Example 138
How to Write Competencies Statements 138
Review 139
Summary 139 • Key Terms 140 •
Discussion Questions 140 • Individual and
Group Activities 141
APPLICATION EXERCISES 141
HR IN ACTION CASE INCIDENT 1:The Chilly Burger
Joint 141
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 142
Experiential Exercise:The Instructor’s Job
Description 142
Chapter 5
Personnel Planning and
Recruiting 143
Workforce Planning and Forecasting 144
Strategy and Workforce Planning 145
Towers Watson Example 145
Forecasting Workforce Needs (Labor Demand) 146
Improving Performance through HRIS 148
Forecasting the Supply of Inside Candidates 148
Forecasting the Supply of Outside Candidates 150
Predictive Workforce Monitoring 150
■
■ HR AS A PROFIT CENTER: Predicting Labor
Needs 151
Why Effective Recruiting is Important 152
The Recruiting Yield Pyramid 152
Improving Recruitment Effectiveness: Recruiters,
Sources, and Branding 152
Internal Sources of Candidates 154
Identifying Internal Candidates 154
Employee Engagement Guide for
Managers 154
Internal Recruitment and
Promotion-from-Within 154
Outside Sources of Candidates 155
Informal Recruiting and the Hidden Job Market 155
Recruiting via the Internet 155
Improving Performance through HRIS 156
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 157
■
■ TRENDS SHAPING HR: SCIENCE IN TALENT
MANAGEMENT 158
Advertising 158
Employment Agencies 159
■
■ HR AND THE GIG ECONOMY 161
Poaching 162
Offshoring and Outsourcing Jobs and the H-1B
Visa 162
Executive Recruiters 163
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES: Recruiting 101 164
Referrals and Walk-Ins 165
Recruitment Process Outsourcers and On-Demand
Recruiting Services 165
College Recruiting 166
Telecommuters 167
Military Personnel 167
Recruiting a More Diverse Workforce 168
Recruiting Women 168
Recruiting Single Parents 168
Older Workers 169
Diversity Counts 169
Recruiting Minorities 169
The Disabled 170
Developing and Using Application Forms 170
Purpose of Application Forms 170
Review 174
Summary 174 • Key Terms 174
• Discussion Questions 175 • Individual and
Group Activities 175
APPLICATION EXERCISES 176
HR IN ACTION CASE INCIDENT 1:Ya Kun Kaya
International 176
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 177
Experiential Exercise:The Nursing Shortage 177
Chapter 6 Selecting Employees 178
The Basics of Testing and Selecting
Employees 179
Why Careful Selection Is Important 179
Reliability 180
Validity 181
How to Validate a Test 182
■
■ HR AS A PROFIT CENTER: Reducing Turnover at
KeyBank 183
Types of Tests 184
Tests of Cognitive Abilities 184
Tests of Motor and Physical Abilities 185
Measuring Personality 185
Achievement Tests 187
■
■ HR PRACTICES AROUND THE GLOBE:Testing for
Assignments Abroad 187
Computerized and Online Testing 187
Improving Performance Through HRIS 188
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 188
11. CONTENTS 9
Work Samples and Simulations 189
Situational Judgment Tests 189
■
■ HR AND THE GIG ECONOMY: Selecting Freelance
Workers 189
Management Assessment Centers 189
Video-Based Situational Testing 190
The Miniature Job Training and Evaluation
Approach 190
■
■ HR IN PRACTICE: Selecting Employees at Honda’s
New Car Plant 190
Computerized Multimedia Candidate Assessment
Tools 191
■
■ HR TOOLS FOR LINE MANAGERS AND
SMALL BUSINESSES: Employee Testing and
Selection 191
Interviewing Candidates 192
Types of Selection Interviews 192
Diversity Counts 193
How Useful Are Interviews? 194
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 194
How to Avoid Common Interviewing Mistakes 195
Using Competencies Models and Profiles in
Employee Interviews 198
■
■ TRENDS SHAPING HR: SCIENCE IN TALENT
MANAGEMENT 199
Using Other Selection Techniques 200
Background Investigations and Reference
Checks 200
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 201
Honesty Testing 204
Graphology 205
■
■ HR AS A PROFIT CENTER: Using Integrity
Tests 205
Medical Exams 206
Drug Screening 206
Realistic Job Previews 206
Tapping Friends and Acquaintances 206
Making the Selection Decision 206
Complying with Immigration Law 207
Improving Performance Through HRIS 208
Developing and Extending the Job Offer 208
Employee Engagement Guide for
Managers 208
Building Engagement:A Total Selection Program 209
The Toyota Way 209
Review 211
Summary 211 • Key Terms 211
• Discussion Questions 212 • Individual and
Group Activities 212
APPLICATION EXERCISES 213
HR IN ACTION CASE INCIDENT 1: Ethics and the Out-
of-Control Interview 213
HR IN ACTION CASE INCIDENT 2: Honesty Testing at
Carter Cleaning Company 214
Experiential Exercise:The Most Important Person
You’ll Ever Hire 214
Appendix:The Structured Situational
Interview 215
PART 3 TRAINING AND HUMAN RESOURCE
DEVELOPMENT 219
Chapter 7
Training and Developing
Employees 220
Orienting/Onboarding New Employees 221
The Purposes of Employee Orientation/Onboarding 222
The Orientation Process 222
Employee Engagement Guide for Managers:
Onboarding at Toyota 224
Overview of the Training Process 225
Aligning Strategy and Training 225
The ADDIE Five-Step Training Process 225
Conducting the Training Needs Analysis 226
Designing the Training Program 228
Developing the Program 230
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA:TRAINING ON THE CLOUD 231
Implementing the Training Program 231
On-the-Job Training 231
Apprenticeship Training 232
Informal Learning 232
Job Instruction Training 233
Lectures 233
Programmed Learning 233
Behavior Modeling 234
Audiovisual-Based Training and
Videoconferencing 234
Vestibule Training 234
Electronic Performance Support Systems (EPSS) 234
Computer-Based Training (CBT) 235
Simulated Learning and Gaming 235
Online/Internet-Based Training 236
■
■ HR AND THE GIG ECONOMY:An Example:
On-Demand Microlearning at Uber 238
Lifelong and Literacy Training Techniques 238
Diversity Training 239
■
■ HR IN PRACTICE: Diversity Training at ABC Virtual
Communications, Inc. 239
Team Training 239
Implementing Management Development
Programs 241
Strategy’s Role in Management Development 241
Succession Planning 242
Improving Performance Through HRIS 242
Managerial On-the-Job Training 243
■
■ HR PRACTICES AROUND THE GLOBE: Global Job
Rotation 243
Off-the-Job Management Training and Development
Techniques 244
Leadership Development at GE 246
Managing Organizational Change Programs 247
Using Organizational Development 247
12. 10 CONTENTS
Evaluating the Training Effort 248
Designing the Study 248
Training Effects to Measure 249
Review 250
Summary 250 • Key Terms 251
• Discussion Questions 251 • Individual and
Group Activities 251
APPLICATION EXERCISES 252
HR IN ACTION CASE INCIDENT 1:The Mentorship
Program at TVH 252
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company:The New Training Program 253
Experiential Exercise: Flying the Friendlier Skies 254
Chapter 8
Performance Management and
Appraisal Today 255
Basic Concepts in Performance Appraisal 256
Why Appraise Performance? 257
Steps in Performance Appraisal 257
Defining the Employee’s Performance Standards 257
■
■ HR AS A PROFIT CENTER: Setting Performance
Goals at Ball Corporation 258
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES: How to Set Effective Goals 258
Who Should Do the Appraising? 259
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 261
Traditional Appraisal Methods 261
Graphic Rating Scale Method 261
Alternation Ranking Method 261
Paired Comparison Method 263
Forced Distribution Method 263
Critical Incident Method 263
Behaviorally Anchored Rating Scales 265
Appraisal Forms in Practice 266
The Management by Objectives Method 267
Computerized and Online PerformanceAppraisals 267
Virtual Appraisal Games 267
Electronic Performance Monitoring 268
Talent Management and Differential Employee
Appraisal 268
Conversation Days 269
How to Deal With Rater Error Problems and
the Appraisal Interview 269
Clarify Standards 269
Avoid Halo Effect Ratings 269
Avoid the Middle 270
Don’t Be Lenient or Strict 270
Diversity Counts 271
Employee Engagement Guide for Managers:
Use the Appraisal Interview to Build
Engagement 274
Performance Management Today 275
Total Quality Management and Performance
Appraisal 275
Performance Management Examples 276
What Is Performance Management? 276
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 277
The Manager’s Role in Performance
Management 278
Making Performance Management Practical 278
■
■ HR IN PRACTICE: Performance Management in
Action: Deloitte’s New Performance Management
Process 278
■
■ HR AND THE GIG ECONOMY: Rating Uber
Drivers 279
Review 280
Summary 280 • Key Terms 281
• Discussion Questions 281 • Individual and
Group Activities 281
APPLICATION EXERCISES 282
HR IN ACTION CASE INCIDENT 1:Appraising the
Secretaries at Sweetwater U 282
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 283
Experiential Exercise: Setting Goals for and Appraising
an Instructor 283
Chapter 9 Managing Careers 284
Career Management 285
Careers Today 285
Psychological Contract 285
The Employee’s Role in Career Management 286
■
■ HR AND THE GIG ECONOMY:The Portfolio
Career 287
The Employer’s Role in Career Management 288
■
■ HR IN PRACTICE:Intuit’s Job Rotation Program 288
Employer Career Management Methods 288
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES:The Manager’s Role in Employee
Career Development 290
Diversity Counts 291
Improving Mentoring and Coaching Skills 291
Being a Better Mentor 293
Improving Performance Through HRIS 293
Employee Engagement Guide for Managers 294
Career Management 294
The New Psychological Contract 294
Commitment-Oriented Career Development Efforts 294
Career-Oriented Appraisals 295
■
■ HR IN PRACTICE: Career Development at
Medtronic 296
Managing Employee Retention and
Turnover 296
■
■ HR as a Profit Center: Costs of Turnover 296
Managing Voluntary Turnover 297
Retention Strategies for Reducing Voluntary
Turnover 298
A Comprehensive Approach to Retaining
Employees 298
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 299
Job Withdrawal 299
Managing Promotions and Transfers 300
Decision 1: Is Seniority or Competence the Rule? 301
Decision 2: How Should We Measure
Competence? 301
13. CONTENTS 11
Decision 3: Is the Process Formal or Informal? 302
Decision 4:Vertical, Horizontal, or Other? 302
Diversity Counts 302
Managing Transfers 303
Managing Retirements 303
Managing Dismissals 304
Grounds for Dismissal 305
Avoiding Wrongful Discharge Suits 307
Supervisor Liability 308
Layoffs and the Plant Closing Law 310
Adjusting to Downsizings and Mergers 310
Review 311
Summary 311 • Key Terms 311
• Discussion Questions 312 • Individual and
Group Activities 312
APPLICATION EXERCISES 313
HR IN ACTION CASE INCIDENT 1: Goelectrix 313
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 313
Experiential Exercise:Where Am I Going . . . and
Why? 314
Appendix: Managing Your Career and Finding a
Job 314
PART 4 COMPENSATION AND TOTAL
REWARDS 321
Chapter 10 Developing Compensation
Plans 322
The Basic Factors in Determining Pay
Rates 323
Aligning Total Rewards with Strategy 323
Equity and Its Impact on Pay Rates 324
Legal Considerations in Compensation 325
■
■ HR AND THE GIG ECONOMY:Are Gig Workers
Employees or Independent Contractors? 329
Union Influences on Compensation Decisions 330
Pay Policies 330
■
■ HR AS A PROFIT CENTER:Wegmans Foods 331
■
■ HR PRACTICES AROUND THE GLOBE:
Compensating Expatriate Employees 332
Job Evaluation Methods 332
What Is Job Evaluation? 332
Salary Surveys 333
Compensable Factors 334
Preparing for the Job Evaluation 334
Job Evaluation Methods: Ranking 335
Job Evaluation Methods: Job Classification 337
Job Evaluation Methods: Point Method 338
Computerized Job Evaluations 338
Wage Curves 338
Pay Grades 339
Rate Ranges and the Wage Structure 339
■
■ HRTOOLS FOR LINE MANAGERSAND SMALL
BUSINESSES: Developing aWorkable Pay Plan 341
Pricing Managerial and Professional Jobs 341
Compensating Executives and Managers 342
What Determines Executive Pay? 342
Compensating Professional Employees 343
Improving Performance Through HRIS 343
Contemporary Topics in Compensation 344
Competency-Based Pay 344
■
■ HR IN PRACTICE: JLG’s Skill-Based Pay
Program 344
Broadbanding 345
Comparable Worth 346
Diversity Counts 347
Board Oversight of Executive Pay 347
Employee Engagement Guide For
Managers 348
Total Rewards Programs 348
Total Rewards and Employee Engagement 348
Review 349
Summary 349 • Key Terms 349
• Discussion Questions 350 • Individual and
Group Activities 350
APPLICATION EXERCISES 351
HR IN ACTION CASE INCIDENT 1: Salary Inequities at
AstraZeneca 351
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 352
Experiential Exercise: Ranking the College’s
Administrators 352
Appendix: How to Create a Market-Competitive
Pay Plan Using the Point Plan Job Evaluation
Method 353
Chapter 11
Pay for Performance and Employee
Benefits 359
Individual Employee Incentive Plans 360
Individual Incentive Plans: Piecework Plans 360
Incentives and the Law 360
Merit Pay as an Incentive 361
Incentives for Professional Employees 361
Nonfinancial and Recognition-Based Awards 362
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 362
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES: Goals and Recognition 362
Goals and Recognition 362
Job Design 363
■
■ HR IN PRACTICE: Using Financial and Nonfinancial
Incentives in a Fast-Food Chain 363
Incentives for Salespeople 364
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 366
Incentives for Managers and Executives 366
Short-Term Managerial Incentives and the Annual
Bonus 366
Executives’ Strategic Long-Term Incentives 367
Team and Organizationwide Incentive
Plans 368
How to Design Team Incentives 368
Profit-Sharing Plans 369
Gainsharing Plans 369
14. 12 CONTENTS
At-Risk Pay Plans 369
Employee Stock Ownership Plans 370
Benefits and Services: The Benefits Picture
Today 370
Pay for Time Not Worked and Insurance
Benefits 371
Unemployment Insurance 371
Vacations and Holidays 372
Sick Leave 373
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 373
■
■ HR AS A PROFIT CENTER: Cutting Absences at
the Driver and Vehicle Licensing Agency 373
Parental Leaves and the Family and Medical Leave
Act 374
Severance Pay 375
Supplemental Unemployment Benefits 375
Insurance Benefits 375
Workers’ Compensation 375
Hospitalization, Health, and Disability Insurance 376
Tools for Employer Health Care Cost Control 380
■
■ HR AS A PROFIT CENTER:The Doctor Is on the
Phone 380
Long-Term Care 381
Life Insurance 381
Benefits for Part-Time and Contingent
Workers 382
■
■ HR AND THE GIG ECONOMY: Gig Worker
Benefits 382
■
■ HR TOOLS FOR LINE MANAGERS AND
SMALL BUSINESSES: Benefits and Employee
Leasing 382
Retirement and Other Benefits 383
Social Security 383
Pension Plans 383
Pensions and Early Retirement 385
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 385
Personal Services and Family-Friendly
Benefits 385
Personal Services 385
Other Job-Related Benefits 386
Diversity Counts 386
Family-Friendly/Work–Life Benefits 386
Executive Perquisites 387
Flexible/Customized Benefits Programs 387
■
■ HR AS A PROFIT CENTER: NES Rentals Holdings,
Inc. 388
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES: “Costless” Small-Business–Friendly
Benefits 389
Employee Engagement Guide For
Managers 390
Costco’s Compensation Plan 390
Review 391
Summary 391 • Key Terms 392
• Discussion Questions 393 • Individual and
Group Activities 393
APPLICATION EXERCISES 394
HR IN ACTION CASE INCIDENT 1: Blame it on the
Incentive Plan 394
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 395
Experiential Exercise: Revising the Benefits
Package 395
PART 5 EMPLOYEE AND LABOR
RELATIONS 396
Chapter 12
Maintaining Positive Employee
Relations 397
Employee Relations 398
Employee Relations Programs For Building and
Maintaining Positive Employee Relations 399
Ensuring Fair Treatment 399
■
■ HR PRACTICES AROUND THE GLOBE:The
Foxconn Plant in Shenzhen, China 400
Improving Employee Relations Through
Communications Programs 402
Develop Employee Recognition/Relations
Programs 403
Use Employee Involvement Programs 403
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 403
■
■ HR IN PRACTICE:The Cost-Effective Suggestion
System 404
■
■ HR AND THE GIG ECONOMY: Getting Gig
Workers Involved 405
The Ethical Organization 406
Ethics and Employee Rights 407
What Shapes Ethical Behavior at Work? 407
The Person (What Makes Bad Apples?) 407
Which Ethical Situations Make for Ethically
Dangerous (Bad Cases) Situations? 408
What Are the “Bad Barrels”?—The Outside Factors
That Mold Ethical Choices 408
Steps Managers Take to Create More Ethical
Environments 408
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES: Small Business Ethics 410
Institute Employee Privacy Policies 411
■
■ HR AS A PROFIT CENTER: Monitoring and
Profits 413
Managing Employee Discipline 413
■
■ The Three Pillars of Fair Discipline 414
Diversity Counts 414
Discipline Without Punishment 416
Employee Engagement Guide For
Managers 416
How Companies Become “Best Companies to Work
For” 416
The “Best Companies to Work For” 416
SAS: Great Benefits,Trust, and Work–Life
Balance 417
Google: Happiness and People Analytics 417
FedEx: Guaranteed Fair Treatment 418
A “Best Company” Human Resource Philosophy 420
15. CONTENTS 13
Review 421
Summary 421 • Key Terms 422
• Discussion Questions 422 • Individual and
Group Activities 422
APPLICATION EXERCISES 423
HR IN ACTION CASE INCIDENT 1: Enron, Ethics, and
Organizational Culture 423
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 424
Experiential Exercise:The Discipline Dilemma 424
Ethics Quiz Answers 425
Chapter 13
Labor Relations and Collective
Bargaining 426
The Labor Movement 427
Why Do Workers Organize? 428
■
■ HR AND THE GIG ECONOMY:Will Uber Drivers
Organize? 428
Employee Engagement Guide for
Managers: Employee Engagement And
Unionization 428
What Do Unions Want? 429
The AFL-CIO and the SEIU 430
Unions and The Law 430
Period of Strong Encouragement:The Norris-
LaGuardia Act (1932) and the National Labor
Relations Act (1935) 431
Period of Modified Encouragement Coupled with
Regulation:The Taft-Hartley Act (1947) 432
Period of Detailed Regulation of Internal Union
Affairs:The Landrum-Griffin Act (1959) 433
The Union Drive and Election 433
Step 1: Initial Contact 433
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 435
Step 2:Authorization Cards 435
Step 3:The Hearing 436
Step 4:The Campaign 437
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES:What to Do when the Union Comes
Calling 438
Step 5:The Election 440
How to Lose an NLRB Election 440
■
■ HR PRACTICES AROUND THE GLOBE: France
Comes to the Workers’ Aid 441
The Collective Bargaining Process 441
What Is Collective Bargaining? 441
What Is Good-Faith Bargaining? 442
The Negotiating Team 442
■
■ HR AS A PROFIT CENTER: Costing the
Contract 443
Bargaining Items 443
Bargaining Stages 443
Impasses, Mediation, and Strikes 445
The Contract Agreement 448
Contract Administration: Dealing with
Grievances 448
What’s Next for Unions? 449
Why the Union Decline? 450
What Are Unions Doing About It? 450
Cooperative Labor–Management Relations 451
■
■ HR IN PRACTICE: Labor–Management
Cooperation and Works Councils in
America 451
Review 452
Summary 452 • Key Terms 453
• Discussion Questions 453 • Individual and
Group Activities 453
APPLICATION EXERCISES 454
HR IN ACTION CASE INCIDENT 1: Negotiating with
the Writers Guild of America 454
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 455
Experiential Exercise:The Organizing Campaign at
Sam’s Cupcake Shop 455
Chapter 14 Improving Occupational
Safety, Health, and Risk
Management 457
Employee Safety and Health: An
Introduction 458
Why Safety Is Important 458
■
■ HR AS A PROFIT CENTER: Improving Safety
Boosts Profits 458
Management’s Role in Safety 459
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES:The Supervisor’s Role in Accident
Prevention 459
A Manager’s Briefing on Occupational Law 460
OSHA Inspections and Citations 461
OSHA Responsibilities and Rights of Employers and
Employees 462
■
■ HR TOOLS FOR LINE MANAGERS AND SMALL
BUSINESSES: Free On-Site Safety and Health
Services 463
What Causes Accidents? 463
Unsafe Working Conditions 463
Unsafe Acts 467
What Traits Characterize “Accident-Prone”
People? 468
How to Prevent Accidents 468
Reduce Unsafe Conditions 468
Provide Personal Protective Equipment 469
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 470
Diversity Counts 470
Reduce Unsafe Acts 470
Screen to Reduce Unsafe Acts 470
Provide Safety Training 471
Use Posters, Incentives, and Positive
Reinforcement 471
■
■ HR IN PRACTICE: Using Positive
Reinforcement 471
Foster a Culture of Safety 472
16. 14 CONTENTS
Establish a Safety Policy and Set Specific Loss
Control Goals 472
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 473
Conduct Regular Safety and Health Inspections 473
Organize a Safety Committee 473
■
■ HR IN PRACTICE: Safety at Saudi Petrol
Chemical 474
Employee Engagement Guide for
Managers 475
Milliken Company—World-Class Safety through
Employee Engagement 475
Involvement-Based Employee Engagement 475
Workplace Health: Problems and
Remedies 476
Chemicals,Air Quality, and Industrial Hygiene 476
■
■ HR AND THE GIG ECONOMY:Temp Employee
Safety 477
Alcoholism and Substance Abuse 478
Job Stress and Burnout 479
Computer Monitor and Ergonomic Health Problems
and How to Avoid Them 481
Infectious Diseases 482
Workplace Smoking 482
Occupational Security and Risk
Management 483
Enterprise Risk Management 483
Preventing and Dealing with Violence at
Work 483
Setting Up a Basic Security Program 485
Terrorism 486
■
■ HR PRACTICES AROUND THE GLOBE: Dealing
with Terrorism Abroad 487
Emergency Plans and Business Continuity 487
Review 488
Summary 488 • Key Terms 488
• Discussion Questions 489 • Individual and
Group Activities 489
APPLICATION EXERCISES 490
HR IN ACTION CASE INCIDENT 1: It’s All about the
Desk Chair 490
HR IN ACTION CASE INCIDENT 2: Carter Cleaning
Company 491
Experiential Exercise: How Safe Is My
University? 491
PART 6 SPECIAL TOPICS IN HUMAN
RESOURCE MANAGEMENT 492
Module A Managing HR Globally 492
HR and the Internationalization of
Business 493
The Human Resource Challenges of International
Business 493
■
■ HR IN PRACTICE: Unionizing Walmart Stores in
China 493
What Is International Human Resource
Management? 494
How Intercountry Differences Affect Human Resource
Management 494
International Employee Selection Issues 496
International Staffing: Home or Local? 496
■
■ HR AS A PROFIT CENTER: Reducing Expatriate
Costs 497
Values and International Staffing Policy 498
SpecialTools for Selecting International Managers 498
Diversity Counts: Sending Women Managers
Abroad 499
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA: JOB BOARDS ABROAD 500
How to Avoid Failed International Assignments 500
Training and Maintaining International
Employees 501
Orienting and Training Employees on International
Assignment 501
PerformanceAppraisal of International Managers 501
International Compensation 502
■
■ HR IN PRACTICE: Expat Pay at CEMEX 503
Safety and Fair Treatment Abroad 503
■
■ HR PRACTICES AROUND THE GLOBE: Business
Travel 503
Repatriation: Problems and Solutions 504
Managing HR Locally: How to Put a Global HR
System into Practice 505
Developing a More Effective Global HR System 505
Making the Global HR System More Acceptable 506
Implementing the Global HR System 506
Review 507
Summary 507 • Key Terms 507
• Discussion Questions 507
APPLICATION EXERCISES 508
HR IN ACTION CASE INCIDENT 1: “Boss, I Think We
Have a Problem” 508
Module B
Managing Human Resources in Small
and Entrepreneurial Firms 509
The Small Business Challenge 510
How Small Business Human Resource Management
Is Different 510
Why HRM Is Important to Small Businesses 511
■
■ HR AS A PROFIT CENTER:The Dealership 511
Using Internet and Government Tools to
Support the HR Effort 512
Complying with Employment Laws 512
Employment Planning, Recruiting, and Selection 514
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 515
Employment Selection 515
Employment Training 516
Employment Appraisal and Compensation 517
Employment Safety and Health 517
Leveraging Small Size: Familiarity, Flexibility,
Fairness, Informality, and HRM 517
Simple, Informal Employee Selection Procedures 517
Flexibility in Training 517
Flexibility in Benefits and Rewards 519
17. CONTENTS 15
Fairness and the Family Business 519
Using Professional Employer Organizations 520
Managing HR Systems, Procedures, and
Paperwork 521
Introduction 521
Basic Components of Manual HR Systems 521
Automating Individual HR Tasks 522
Human Resource Information Systems (HRIS) 522
HRIS Vendors 523
HR and Intranets 523
■
■ TRENDS SHAPING HR: DIGITAL AND SOCIAL
MEDIA 523
Review 524
Summary 524 • Discussion Questions 525
APPLICATION EXERCISES 525
HR IN ACTION CASE INCIDENT 1: Carter Cleaning
Company:The New Pay Plan 525
Appendix 526
Glossary 538
References 547
Name Index 588
Subject Index 591
18. 16
New to This Edition
P R E F A C E
Today managers—not just HR managers—need a
strong foundation in HR concepts and techniques
like interviewing and appraising to do their jobs.
You’ll therefore find an emphasis here on practical
material you need to perform your day-to-day man-
agement responsibilities, even if you never spend
one day as a human resource manager.
At the heart of the book is the
practical skills-oriented mate-
rial woven into almost every
paragraph—into the book’s
DNA—plus special “how-to”
features.
Special “how-to”
Features for Building
Your Work Skills
and Employability
Building Your
Management Skills
features show how to
apply what you’ve
learned, such as how to
conduct effective
employment interviews.
Know Your Employment
Law features show the
practical implications of
the employment laws
that apply to each
chapter’s topics, such as
recruitment.
HR Tools for Line
Managers and Small
Businesses show how
managers, supervisors,
and small businesses use
practical HR tools such
as work sampling
tests to improve
performance.
HR in Practice features
show how managers and
companies such as
Zappos actually
implement their HR
practices.
HR as a Profit Center
features show how to
use HR methods to cut
costs and improve
performance.
40 PART 1 • INTRODUCTION
TRENDS SHAPING HR: Digital and Social Media
SOME SOCIAL MEDIA HR PROS AND CONS Widespread use of social
media presents challenges to employers. Some employees use Facebook-type
accounts to bully coworkers. Here, employers must distinguish between illegal
online harassment (applying to race, religion, national origin, age, sex/gender,
genetic information, and disability discrimination) and common personality
conflicts. Employers at least need a zero-tolerance policy on bullying.89
Of course, social media has been great for staffing. It’s easy for employers
to find applicants on LinkedIn, for instance. However, viewing an applicant’s
social media profile may reveal information on things like religion, race, and
sexual orientation.90
Some states therefore forbid employers from requesting
employees’ or applicants’ passwords. At a minimum, implement policies restrict-
ing who can check out candidates online. Supervisors should generally not do
such checking themselves.
HR Practices Around the Globe
Applying Equal Employment Law Abroad
The Civil Rights Act of 1991 marked a big change in the geographic applicability of
equal rights legislation. Congressional legislation generally only applies within U.S. ter-
ritory unless specifically stated otherwise.85
However, CRA 1991 specifically expanded
coverage by amending the definition of “employee” in Title vII to mean a U.S. citi-
zen employed in a foreign country by a U.S.-owned or controlled company.86
At least
theoretically, therefore, U.S. citizens now working overseas for U.S. companies enjoy
the same equal employment opportunity protection as those working within U.S. bor-
ders. (Title vII does not apply to foreign operations not owned or controlled by a U.S.
employer, however.)
However, two factors limit the widespread application of CRA 1991 abroad. First,
there are numerous exclusions. For example, an employer need not comply with Title
vII if compliance would cause the employer to violate the law of the host country
(for instance, some foreign countries have statutes prohibiting women in management
positions).87
Another problem is the practical difficulty of enforcing CRA 1991 abroad.
For example, the EEOC investigator’s first duty in such a case is to analyze the
finances and organizational structure of the respondent (employer). But in practice
few investigators are trained for this duty, and no precise standards exist for such
investigations.88
Talk About It – 2
Ifyourprofessorhaschosentoassignthis,gotowww.pearson.com/mylab/management
to discuss the following questions. If you were running a China-based unit of an American
company, would you work hard to follow U.S. EEO laws? Why?
CHAPTER 4 • JOB ANALYSIS AND TALENT MANAGEMENT 103
BUILDING YOUR MANAGEMENT SKILLS
Determining the Job’s Duties
Of course the crucial question here is, “How do I determine what the job’s
duties are and should be?” The answer first is, from the job analysis; this should
reveal what the employees on each job are doing now.
Second, there are governmental sources of standardized job description
information. For example, the U.S. Department of Labor did much of the
early work developing job analysis.27
It compiled its results in what was for
many years the bible of job descriptions, the Dictionary of Occupational
Titles. This mammoth book contained detailed information on virtually
every job in America. We’ll see that Internet-based tools such as O*NET
online have largely replaced the Dictionary. (We present an example later in
this section.) Another option is the government’s Standard Occupational
Classification (SOC; www.bls.gov/soc/socguide.htm). This classifies all
workers into one of 23 major groups of jobs, such as “Management Occupa-
tions” and “Healthcare Occupations.” These in turn contain 96 minor
groups of jobs, which in turn include 821 detailed occupations, such as the
marketing manager description in Figure 4.6 (on page 104). The manager
may also use proprietary online sources of job description information, such
as www.jobdescription.com.
Another simple solution is just to Google the job description you want, to
see online what others are doing. Thus, someone writing job descriptions for
jobs such as marketing manager would readily find relevant online descriptions
as follows:
Go to http://hiring.monster.com. Then click Resource Center, then
Recruiting and Hiring Advice, then Job descriptions, then Sample job
descriptions. Then scroll down to Marketing and Sales Manager Sample
Job Description.28
Or go to http://www.careerplanner.com/. Then click Job Descriptions, then
scroll down to the job description you’re interested in.29
As an example, Meg, the accounting supervisor from the chapter opener,
couldn’t see how her payroll clerk could have missed reconciling the actual
payroll with the payroll report he sent to the IRS. What duty was missing? How
might she make use of online descriptions such as:
Go to http://www.americasjobexchange.com/. Then click resources,
then Browse Job Description. Then go to Clerical Administrative, then
to Payroll Timekeeping Clerk.30
(Or she could try similar descriptions at
careerbuilder.com.) LinkedIn is another option, as in the following Trends
feature.
Standard Occupational
Classification (SOC)
Classifies all workers into one of 23
major groups of jobs that are sub-
divided into minor groups of jobs
and detailed occupations.
TRENDS SHAPING HR: Digital and Social Media
USING LINKEDIN Sometimes the easiest way to unearth job titles and duties
is just to use social media like LinkedIn. For example, to paraphrase what
someone who recruits for open positions in his company posted on Linke-
dIn: I hope some of you IT recruiters out there can help me to better under-
stand what I need to put into the job descriptions that I’m writing for the
developers and development managers I’m recruiting for. The first of many
replies listed 12 tasks including: (1) Do technical skills match the desired job?
(2) What technical problems were solved by the job seeker? and (3) Did job
seeker know about Cloud Deployment?31
HR management is changing fast.
For example, Accenture Consul-
tants estimates that social media
tools like LinkedIn will soon pro-
duce up to 80% of new recruits.
New Trends Shaping HR fea-
tures highlight how managers
today accomplish their HR tasks.
19. About 25% of today’s workers don’t have “regular” jobs. Instead, they’re inde-
pendent or “gig” workers—that’s about 60 million gig workers in the USA alone.
New HR and the Gig Economy features show how companies manage gig workers’
HR needs, for example how to recruit, train, and manage the safety of gig workers.
SHRM—the Society for Human Resource Management administers a certification pro-
gram for HR professionals. This 5th edition addresses SHRM’s functional knowledge
areas, with Knowledge Base icons call-outs and a SHRM knowledge overview and
group activity questions in the
accompanying MyLab Management.
B A S E
K
N
O
WLE
D
G
E
82
Learn It
If your professor has chosen to assign this, go to www.pearson.com/mylab/management
to see what you should particularly focus on and to take the Chapter 3 Warm Up.
MyLab Management
Improve Your Grade!
When you see this icon, visit
www.pearson.com/mylab/management for
activities that are applied, personalized, and
offer immediate feedback.
3
OVERVIEW:
In this chapter, we will cover . . .
■
■ The Strategic Management Process
■
■ Strategic Human Resource Management
■
■ HR Metrics and Benchmarking
■
■ Building High-Performance Work Systems
■
■ Employee Engagement and Performance
■
■ Employee Engagement Guide For Managers: How Kia
Motors (UK) Improved Performance with an HR Strategy
Aimed at Boosting Employee Engagement
Human Resource
Strategy and
Performance
LEARNING OBJECTIVES
When you finish studying this chapter, you should be able to:
1. Explain, with examples, each of the steps in the strategic manage-
ment process.
2. Define strategic human resource management, and give an exam-
ple of strategic human resource management in practice.
3. Explain, with examples, why metrics are important for managing
human resources.
4. Answer the question “What are high-performance work systems?” and
give examples of how they differ from non-high-performance ones.
5. Answer the question (with examples) “Why is employee engage-
ment important?”
6. Describe how you would execute a program to improve employee
engagement.
M03_DESS0218_05_SE_C03.indd 58 10/19/17 9:02 AM
OVERVIEW:
IN THIS CHAPTER, WE WILL COVER . . .
■
■ What Is Human Resource Management?
■
■ The Trends Shaping Human Resource Management
■
■ The New Human Resource Management
■
■ The New Human Resource Manager
■
■ The Plan of This Book
MyLab Management
Improve Your Grade!
When you see this icon, visit
www.pearson.com/mylab/management for
activities that are applied, personalized, and
offer immediate feedback.
Learn It
If your professor has chosen to assign this, go to www.pearson.com/mylab/
management to see what you should particularly focus on and to take the
Chapter 1 Warm Up.
1
PART
INTRODUCTION
Managing Human
Resources Today
1
LEARNING OBJECTIVES
When you finish studying this chapter, you should be able to:
1. Answer the questions, “What is human resource management?”
and “Why is knowing HR management concepts and techniques
important to any supervisor or manager?”
2. Describe with examples what trends are influencing human
resource management.
3. Discuss at least five consequences such trends have for human
resource management today.
4. Explain what sorts of competencies, knowledge, and skills
characterize today’s new human resource manager.
5. Outline the plan of this book.
M01_DESS0218_05_SE_C01.indd 1 10/19/17 9:00 AM
25
214 PART 3 • TRAINING AND HUMAN RESOURCE DEVELOPMENT
to eight trainees to virtually “sell” their sales problem and solution to an execu-
tive.106 Scenario-based e-learning involves inserting realistic problems or work
scenarios that small groups of trainees can discuss into their e-learning lessons.
One e-learning vendor includes realistic tasks for employees to address, while
others include business cases.107
HR and the Gig Economy108
An Example: On-Demand Microlearning at Uber
If you think that all those Uber drivers simply get hired and go on the road with no
formal training, you’re wrong. There are hundreds of things those drivers must know
about driving for Uber—from how to use the Uber app and driving systems, to how to
greet and deal with customers—and Uber needs to train over 30,000 new drivers every
week. How do they do it?
Uber’s training challenge is actually similar to that of most firms that rely on gig
workers. The main problems are (1) the trainees aren’t permanent employees but largely
just “passing through,” so what you invest in their training must be carefully controlled;
and (2) the workers are all working on their own schedules, so training must be available
when each worker wants it, on demand.
So, the short answer to “how does Uber do it” is that driver training is online,
on-demand, and delivered in microparcels. Uber uses a learning management system
called MindFlash, which offers its clients around the globe thousands of courses, often
focused on training gig workers like Uber’s.109
Among other benefits, the MindFlash
system provides real-time reporting of trainees’ results, so Uber knows if a driver is
ready to go to work.
Building gig-friendly training programs like Uber’s has several characteristics. The
first and perhaps most crucial is that everyone involved—management, HR, and espe-
cially the gig workers themselves—submit detailed “blueprints” of the workers’ daily
activities, from which workers’ (in this case drivers’) duties, skills and knowledge, and
required training can be ascertained. Then, the courses are split into short digestible
microcourses, stored on the vendor’s cloud, and delivered on demand to each worker’s
mobile device when he or she wants it.
Lifelong and Literacy Training Techniques
Lifelong learning means providing employees with continuing learning experiences
over their tenure with the firm, with the aim of ensuring they have the opportunity
to learn the skills they need to do their jobs and to expand their horizons. With
people increasingly having to shift jobs and careers, such learning is, for many, a
necessity.
Lifelong learning may range from basic remedial skills (for instance, English
as a second language) to college. For example, one senior waiter at the Rhapsody
restaurant in Chicago received his undergraduate degree and began work toward
a master of social work using the lifelong learning account (LiLA) program his
employer offers. Employers and employees contribute to LiLA plans (without the
tax advantages of 401(k) plans), and the employee can use these funds to better
himself or herself.110
Literacy Training By one estimate, about one in seven workers can’t read their
employers’ manuals.111
Yet today’s emphasis on teamwork and quality requires
that employees read, write, and understand numbers.112
Employers often turn to private training firms or community colleges to pro-
vide the requisite education. Another simple approach is to have supervisors teach
basic skills by giving employees writing and speaking exercises.113
For example, if
an employee needs to use a manual to find out how to change a part, teach that
lifelong learning
Provides employees with continu-
ing learning experiences over their
tenure with the firm, with the aims
of ensuring they have the opportu-
nity to learn the skills they need to
do their jobs and to expand their
occupational horizons.
HR and the Gig Economy
Do Gig Workers Need Job Specifications?
Hiring gig workers doesn’t mean the employer doesn’t need job descriptions and job
specifications. With respect to job descriptions, the prudent employer will still want to
list at least the main duties it expects the worker to do. And job specifications are surely
required, because the employer must ensure that the people doing its work at least fit
certain minimum requirements.
For example, both Lyft and Uber list “driver requirements,” which are essentially job
specifications.46
Although driver requirements vary somewhat by location, both Uber and
Lyft require drivers to be at least 21, have a Social Security number and in-state driver’s
license (at least one year old), have in-state insurance, and undergo both DMV and national
and county-wide background checks. For Uber, the background check also means for the
past 7 years no DUI or drug-related offenses, or incidents of driving without insurance or
license, or fatal accidents, or history of reckless driving, and no criminal history. And there
are other requirements, including that your car pass muster. As a partial list, it must be
a four-door sedan, seat four or more (excluding driver), be 2001 or newer, have in-state
plates and be currently registered, and pass Uber’s vehicle inspection.
Talk About It– 2
If your professor has chosen to assign this, go to www.pearson.com/mylab/
management to discuss the following questions. Based on your experience, what
other human requirements would you say there are to be a good Uber or Lyft driver?
Should the companies add these as requirements? Why?
such as physical traits, personality, interests, or sensory skills that imply some
potential for performing the job or for trainability. Thus, for a job that requires
detailed manipulation, you might want someone with excellent finger dexterity.
Employers identify the job’s human requirements either through a subjective, judg-
mental approach or through statistical analysis (or both).
Specifications Based on Judgment
Most job specifications simply reflect the educated guesses of people like supervisors
and human resource managers. The basic procedure here is to ask, “What does it
take in terms of education, intelligence, training, and the like to do this job well?”
How does one make such “educated guesses”? You could simply review the
job’s duties and deduce from those what human traits and skills the job requires.
You can also choose human traits and skills from the competencies listed in online
job descriptions like those at www.jobdescription.com. (For example, a typical job
description there lists competencies like “Generates creative solutions” and “Man-
ages difficult or emotional customer situations.”) O*NET online is another option.
Job listings there include lists of required education and other experience and skills.
In any case, use common sense. Don’t ignore the behaviors that may apply to almost
any job but that might not normally surface through a job analysis. Industriousness is
an example. Who wants an employee who doesn’t work hard? One researcher collected
supervisor ratings and other information from 18,000 employees in 42 different hourly
entry-level jobs.44
“Generic” work behaviors that he found to be important to all jobs
included thoroughness, attendance, unruliness (lack of), and schedule flexibility (accepts
schedule changes when necessary; offers to stay late when the store is extremely busy).45
M04_DESS0218_05_SE_C04.indd 109 10/19/17 9:03 AM
PREFACE 17
20. 18 PREFACE
Solving Teaching and Learning Challenges
A Focus on Building Your Management Skills
One of the best ways to get and keep a job is to show that you can do the
job and do it well.
That’s why every single edition of this book has had the same aim: to provide all
managers—not just HR managers—with the practical skills and knowledge you
need to perform your day-to-day management responsibilities. For example, you’ll
learn about:
Ch2: How to deal with a charge of
discrimination
. . . You turn down a member of a protected group
for a job. This person believes he or she was dis-
criminated against due to being in a protected
class, and decides to sue . . . What should you do?
Ch 4: How to write a job description
. . . A job description is a written statement of
what the worker actually does, how he or she
does it, and what the job’s working conditions
are. This information is in turn . . .
Ch 6: How to interview job candidates
. . . First make sure you understand the job and
its human requirements. Then compose ques-
tions based on actual job duties from the job
description . . . . Examples include (1) situational
questions like “Suppose you were giving a sales
presentation and a difficult technical question
arose . . .
Ch 12: How to discipline an employee
. . . Make sure the evidence supports the charge
of employee wrongdoing. (Arbitrators often cite
“the employer’s evidence did not support the
charge.”) . . . Make sure to protect the employ-
ees’ due process rights . . .
Learn How to Build Employee Engagement
Employee engagement refers to being psychologically involved
in, connected to, and committed to getting one’s jobs done.
You’ll find specific practical examples and advice on how managers
build engaged employee work teams and companies.
Employee Engagement Guide for Managers sections in Chapters
1–14 show how managers use human resource activities to improve
employee engagement.
For example, Chapter 3’s show how Kia Motors (UK) improved
Employee Engagement.
CHAPTER 3 • HumAn RESouRCE STRATEgy AnD PERfoRmAnCE 81
Tomlinson (with the support of Kia UK’s top management) wisely decided
to develop, as he put it, “an employee engagement strategy to improve employee
morale and address the high levels of employee turnover.”75
In brief, the idea was
that, by (1) putting in place new HR policies and practices aimed at improving
employee engagement, he could (2) change Kia UK employees’ behavior (improve
performance and reduce turnover, for instance) and thereby (3) support the parent
company’s stated strategy of “raising our competencies as a global maker in all
areas.” The accompanying Management Skills feature shows what he actually did
to boost employee engagement.
BUILDING YOUR MANAGEMENT SKILLS
How to Execute an Employee Engagement Strategy
Actually executing Kia UK’s employee engagement HR strategy involved six
steps (and these provide a roadmap for any such endeavor). First, Kia UK set
measurable objectives for the program. These objectives included improving
by at least 10% survey feedback scores for line managers’ behaviors, in terms
of communication, the quality of appraisal feedback they gave their direct
reports, the recognition of work done, and the respect between manager and
employee.76
Other objectives included reducing employee turnover employment
costs (e.g., recruitment costs) by at least 10% per year.
Second, Kia UK held an extensive leadership development program. For
example, they sent all managers for training to improve their management
skills. They then tested the new skills with “360-degree” assessment tools (these
basically meant having managers’ bosses, peers, and subordinates rate the man-
agers’ new leadership skills).
Third, Kia UK instituted new employee recognition programs. These
included, for instance, giving “Outstanding Awards” to selected employees
quarterly, and “Kia thank you” cards for jobs well done.77
Fourth, Kia UK improved internal communications. For example, they insti-
tuted quarterly employee briefings, more extensive use of performance apprais-
als, and launched a new corporate intranet called Kia Vision (this provided
key business information and other useful communiqués to all employees).
Based on employee feedback, Kia UK also decided, as part of the enhanced
communications, to institute an employee forum. This consisted of one repre-
sentative from each department; the forum in effect empowered and involved
employees by enabling them to express opinions, suggestions, and concerns
about their jobs.
Fifth, they instituted a new employee development program. This involved
using the company’s appraisal process to identify employees’ training needs.
Kia then created training plans for each employee. They based these plans on
Kia’s needs and on the employee’s stated career aspirations.
Sixth, Kia UK made a number of changes to its compensation and other
policies. For instance, they eliminated bonuses and substituted fixed-rate
percentage-based salary increases. They also rewrote the entire employee hand-
book and all HR policies and procedures “to ensure they were aligned with
[Kia UK’s new] cultural values.”78
The Results
The results of the new employee engagement program were impressive. Employee
surveys of employee engagement and of line managers’ communications and other
behaviors improved markedly; employee turnover fell from 31% in 2006 to 15%
in 2007, to 5% in 2008, and to below 2% by the end of 2009; and recruitment
M03_DESS0218_05_SE_C03.indd 81 10/23/17 10:33 AM
21. PREFACE 19
Unique to this book: New HR and the Gig Economy features show how to recruit,
train, and manage the safety of gig workers.
And our unique Strategy Model helps provide you with a “big picture” view:
Strategic human resource management means formulating and executing human
resource policies and practices that produce the employee competencies and behav-
iors the company needs to achieve its strategic aims.
Our model illustrates this idea and follows this three-step sequence:
• Set the firm’s strategic aims,
• Pinpoint the employee behaviors and skills we need to achieve these strategic
aims, and then
• Decide what HR policies and practices will enable us to produce these neces-
sary employee behaviors and skills.
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MyLab Management suggested activities
Learn It
Students can be assigned the Chapter Warm-Up before
coming to class. Assigning these questions ahead of time
will hopefully help ensure that students come to class
prepared.
Watch It
Recommends a video clip that can be assigned to students
for outside classroom viewing or for in-classroom use.
1
OVERVIEW:
IN THIS CHAPTER, WE WILL COVER . . .
■
■ What Is Human Resource Management?
■
■ The Trends Shaping Human Resource Management
■
■ The New Human Resource Management
■
■ The New Human Resource Manager
■
■ The Plan of This Book
MyLab Management
Improve Your Grade!
When you see this icon, visit
www.pearson.com/mylab/management for
activities that are applied, personalized, and
offer immediate feedback.
Learn It
If your professor has chosen to assign this, go to www.pearson.com/mylab/
management to see what you should particularly focus on and to take the
Chapter 1 Warm Up.
1
Managing Human
Resources Today
1
LEARNING OBJECTIVES
When you finish studying this chapter, you should be able to:
1. Answer the questions, “What is human resource management?”
and “Why is knowing HR management concepts and techniques
important to any supervisor or manager?”
2. Describe with examples what trends are influencing human
resource management.
3. Discuss at least five consequences such trends have for human
resource management today.
4. Explain what sorts of competencies, knowledge, and skills
characterize today’s new human resource manager.
5. Outline the plan of this book.
Source:
Mitar
Vidakovic/Shutterstock
M01_DESS0218_05_SE_C01.indd 1 10/23/17 10:11 AM
Talk About It
These are discussion-type questions that can be assigned
as an activity within the classroom.
Assisted-Graded Writing Questions
These are short essay questions that the students can
complete as an assignment and submit to you, the pro-
fessor, for grading.
Watch It
How does a company actually go about putting its human resource philosophy into
action? If your professor has chosen to assign this, go to www.pearson.com/mylab/
management to watch the video Patagonia Human Resource Management and then
answer the questions to show what you would do in this situation.
CHAPTER 6 • SELECTING EMPLOYEES 165
Work Samples and Simulations
Work samples and simulations like the situational judgment tests and assess-
ment centers we discuss next can be considered tests. However, they differ from
most of the tests we’ve discussed because they measure job performance directly.
Personality and interests inventories, on the other hand, try to predict job perfor-
mance by measuring traits like extroversion or interests.
Situational Judgment Tests
Situational judgment tests are personnel tests “designed to assess an applicant’s
judgment regarding a situation encountered in the workplace” and can be quite
effective.47
Here’s a sample test question:
You are a sales associate at Best Buy in Miami, Florida. Many of the
customers check the product’s feel and price with you, and then buy it at
Amazon for a lower price.
Situation 1: A customer comes to you with a printout for a Samsung
Galaxy phone from Amazon.com, and proceeds to ask you detailed ques-
tions about price, battery life, and how to work the phone, while mentioning
that “the price at Amazon is about 25% less than yours.” You would:
1. Tell the customer to go buy the phone at Amazon.
2. Tell the customer to wait for 20 minutes while you take care of another
customer.
3. Explain the advantages of similar phones you have that may better ful-
fill the buyer’s requirements.
4. Ask your supervisor to try to sell the customer on buying the Galaxy
from Best Buy.
HR and the Gig Economy
Selecting Freelance Workers
Many employers today build their staff wholly or in part around freelance workers like
short-term self-employed programmers, designers, or marketers. One website design
company owner says that if he needs designers for short projects he ”just posts” the
job online and gets multiple applications within minutes.48
Freelancer community websites enable such employers to recruit and select the
right freelance team, based on each freelancer’s reputation and work product. For
example, Upwork.com (see www.upwork.com/) reports its members’ skills assessments
and lists detailed project work experience, making it easier for prospective employ-
ers to decide whom to hire. Similarly, the TopCoder.com (see www.topcoder.com/)
programmer community site helps employers identify top programmers based on the
reputations they earned within the community.
Talk About It – 3
If your professor has chosen to assign this, go to www.pearson.com/mylab/
management to discuss the following questions: Go to one or more sites like these.
If you were a programming manager for a company, could you use the site to find
and hire a new employee directly? If not, what else might you need?
Management Assessment Centers
A management assessment center is a two- to three-day simulation in which 10 to
12 candidates perform realistic management tasks (like making presentations)
under the observation of experts who appraise each candidate’s leadership
ment assessment
n which management
es are asked to make deci-
ypothetical situations and
d on their performance.
24 PART 1 • INTRODUCTION
CH
APTER
1
Working individually or in groups,
conduct an Internet search and library research
to answer the following questions: What
human resource management–related steps did
Siegel take to help get Tyco back on the right
track? Do you think she took the appropriate
steps? Why or why not? What, if anything, do
you suggest Tyco’s HR head do now?
1-13. Working individually or in groups, develop a
list showing how trends such as workforce
diversity, technological trends, globalization,
and changes in the nature of work have affected
the college or university you are now attending
or the organization for which you work.
1-14. Working individually or in groups, develop
several examples showing how the new HR
management practices mentioned in this
chapter (using technology, and supporting
sustainability efforts, for instance) have or
have not been implemented to some extent in
the college or university you are now attending
or in the organization for which you work.
1-15. For this activity, you will need the
documents titled (1) “HRCI PHR®
and
SPHR®
Certification Body of Knowledge,
and (2) “About the Society for Human
Resource Management (SHRM) Body of
Competency Knowledge®
Model and
Certification Exams.” Your instructor
can obtain these two documents from the
Pearson Instructor Resource Center and
pass them on to you. These two document
list the knowledge someone studying for
the HRCI or SHRM certification exam
needs to have in each area of human
resource management (such as in Strategic
Management, and Workforce Planning).
In groups of several students, do four
things: (1) review the HRCI and/or SHRM
documents; (2) identify the material in this
chapter that relates to HRCI’s or SHRM’s
required knowledge lists; (3) write four
multiple-choice exam questions on this
material that you believe would be suitabl
for inclusion in the HRCI exam and/or
the SHRM exam; and, (4) if time permits,
have someone from your team post your
team’s questions in front of the class, so th
students in all teams can answer the exam
questions created by the other teams.
MyLab Management
If your instructor is using MyLab Management, go to www.pearson.com/mylab/
management for the following assisted-graded writing questions:
1-16. How do today’s HR managers deal with the trends and challenges shaping
contemporary HR management?
1-17. Discuss some competencies HR managers need to deal with today’s trends
and challenges.
For one thing, she explained, employee turnover w
too high, and no sooner had one employee been put
the job than another one resigned. With customers
see and loans to be made, she explained, she had lit
time to work with the new employees as they cam
and went.
All branch supervisors hired their own employe
without communication with the home office or oth
branches. When an opening developed, the supervis
tried to find a suitable employee to replace the work
who had quit.
After touring the 22 branches and finding simi
problems in many of them, Nelson wondered what t
As a new member of the board of directors for a local
bank, Jack Nelson was being introduced to all the
employees in the home office. When he was introduced
to Ruth Johnson, he was curious about her work and
asked her what her machine did. Johnson replied that she
really did not know what the machine was called or what
it did. She explained that she had been working there for
only two months. She did, however, know precisely how
to operate the machine. According to her supervisor, she
was an excellent employee.
At one of the branch offices, the supervisor in
charge spoke to Nelson confidentially, telling him that
“something was wrong,” but she didn’t know what.
APPLICATION EXERCISES
HR IN ACTION CASE INCIDENT 1
Jack Nelson’s Problem
22. MyLab Management
Reach every student by pairing this text with MyLab Management
MyLab is the teaching and learning platform that empowers you to reach every
student. By combining trusted author content with digital tools and a flexible
platform, MyLab personalizes the learning experience and improves results for
each student. Learn more about MyLab Management at www.pearson.com/mylab/
management.
Deliver trusted content You deserve teaching materials that meet your own high
standards for your course. That’s why we partner with highly respected authors to
develop interactive content and course-specific resources that you can trust—and
that keep your students engaged.
Empower each learner Each student learns at a different pace. Personalized
learning pinpoints the precise areas where each student needs practice, giving all
students the support they need—when and where they need it— to be successful.
Teach your course your way Your course is unique. So whether you’d like to
build your own assignments, teach multiple sections, or set prerequisites, MyLab
gives you the flexibility to easily create your course to fit your needs.
Improve student results When you teach with MyLab, student performance
improves. That’s why instructors have chosen MyLab for over 15 years, touching
the lives of over 50 million students.
Developing Employability Skills
Trends Shaping HR: Digital and Social Media Career sites make the inner workings
of employers more transparent. Sites such as Glassdoor, CareerBliss, CareerLeak,
and JobBite let members share insights into hundreds of thousands of specific
employers, including specific company-by-company commentaries, salary reports,
and CEO approval ratings . . . .
HR as a Profit Center contains actual examples of how human resource manage-
ment practices add value by reducing costs or boosting revenues.
HR and the Gig Economy features show how companies manage gig workers’ HR
needs, for example, how to recruit, train, and manage the safety of gig workers
HR Tools for Line Managers and Small Businesses explains that many line man-
agers and entrepreneurs are “on their own” when it comes to human resource
management and describes work sampling tests and other straightforward HR
tools that line managers and entrepreneurs can create and safely use to improve
performance.
Know Your Employment Law features within each chapter discuss the practi-
cal implications of the employment laws that apply to that chapter’s topics,
such as the laws relating to recruitment (Chapter 5), selection (Chapter 6), and
safety (Chapter 14).
Diversity Counts features provide practical insights for managing a diverse
workforce, for instance, regarding gender bias in selection decisions, bias in
performance appraisal, and “hidden” gender bias in some bonus plans.
Improving Performance Through HRIS are embedded features that demon-
strate how managers use human resource technology to improve performance.
20 PREFACE
23. HR Practices Around the Globe
Applying Equal Employment Law Abroad Expanding
abroad complicates complying with equal employment
laws. For example, Dell announced big additions to its
workforce in India. Are U.S. citizens working for Dell
abroad covered by U.S. equal opportunity laws? In prac-
tice, the answer depends on U.S. laws, international trea-
ties, and the laws of the host country.
Instructor Teaching Resources
This program comes with the following teaching resources.
Supplements available to instructors
at www.pearsonglobaleditions.com Features of the Supplement
Instructor’s Manual
authored by Carol Heeter, Ivy Tech
Community College
• Chapter-by-chapter summaries and interesting issues on related topics
• Additional assignments and activities not in the main book
• Teaching outlines
• Teaching tips
• Solutions to all questions and problems in the book
Test Bank
authored by Susan Leshnower,
Midland College
More than 1,500 multiple-choice, true/false, short-answer, and graphing
questions with these annotations:
• Difficulty level (1 for straight recall, 2 for some analysis, 3 for complex analysis)
• Type (Multiple-choice, true/false, short-answer, essay
• Skill (Application or concept) that is needed to answer the question
• Learning outcome
• AACSB learning standard, where applicable (Written and Oral Communica-
tion; Ethical Understanding and Reasoning; Analytical Thinking; Information
Technology; Interpersonal Relations and Teamwork; Diverse and Multicul-
tural Work; Reflective Thinking; Application of Knowledge)
Computerized TestGen TestGen allows instructors to:
• Customize, save, and generate classroom tests
• Edit, add, or delete questions from the Test Item Files
• Analyze test results
• Organize a database of tests and student results.
PowerPoints
authored by Dan Morrell, Middle
Tennessee State University
Slides include applicable graphs, tables, and equations in the textbook.
PowerPoints meet accessibility standards for students with disabilities. Features
include, but not limited to:
• Keyboard and Screen Reader access
• Alternative text for images
• High color contrast between background and foreground colors
PREFACE 21
HR Practices Around the Globe
Applying Equal Employment Law Abroad
The Civil Rights Act of 1991 marked a big change in the geographic applicability of
equal rights legislation. Congressional legislation generally only applies within U.S. ter-
ritory unless specifically stated otherwise.85
However, CRA 1991 specifically expanded
coverage by amending the definition of “employee” in Title VII to mean a U.S. citi-
zen employed in a foreign country by a U.S.-owned or controlled company.86
At least
theoretically, therefore, U.S. citizens now working overseas for U.S. companies enjoy
the same equal employment opportunity protection as those working within U.S. bor-
ders. (Title VII does not apply to foreign operations not owned or controlled by a U.S.
employer, however.)
However, two factors limit the widespread application of CRA 1991 abroad. First,
there are numerous exclusions. For example, an employer need not comply with Title
VII if compliance would cause the employer to violate the law of the host country
(for instance, some foreign countries have statutes prohibiting women in management
positions).87
Another problem is the practical difficulty of enforcing CRA 1991 abroad.
For example, the EEOC investigator’s first duty in such a case is to analyze the
finances and organizational structure of the respondent (employer). But in practice
few investigators are trained for this duty, and no precise standards exist for such
investigations.88
Talk About It – 2
Ifyourprofessorhaschosentoassignthis,gotowww.pearson.com/mylab/management
to discuss the following questions. If you were running a China-based unit of an American
company, would you work hard to follow U.S. EEO laws? Why?
24. 22
I am indebted to many people for their assistance in creating this book. I
appreciate
the conscientious and useful suggestions from the reviewers of the previous
editions of Fundamentals of Human Resource Management.
Samuel Todd, Georgia Southern University/UMASS Amherst
Dale J. Dwyer, The University of Toledo
Melissa L. Gruys, Wright State University, Ohio
John H. Stern, Darla Moore School of Business, University of South Carolina
Dan Morrell, Middle Tennessee State University
Marie D. K. Halvorsen-Ganepola, University of Notre Dame
Howard J. Klein, The Ohio State University
Paul W. Mulvey, Poole College of Management, North Carolina State University
Gary Stroud, Franklin University, Ohio
I am very grateful to our supplements authors, Carol Heeter, Ivy Tech Community
College and Dan Morrell.
At Pearson, I thank the Fundamentals of Human Resource Management, 5th
edition team including Stephanie Wall, Editor in Chief; Daniel Tylman, Acqui-
sitions Editor; Melissa Feimer, Managing Producer for Qualitative Disciplines;
Yasmita Hota, Content Producer; Linda Siebert Albelli, Editorial Assistant; Ann
Pulido, Project Manager; and Kerri Tomasso, Development Editor. Thanks to the
world-wide Pearson sales team, without whose hard work this book might just
languish on a shelf.
At home, I want to thank as always my wife Claudia for her support, my son
Derek for his advice, and of course, Lisa, Samantha, and Taylor.
Global Edition Acknowledgments
Pearson would like to thank the following people for their work on the Global
Edition:
Contributors
Robert Bateman, American University of Sharjah
Ismail Hussein, Lebanese American University
Malcolm Parker
Gilbert Tan, Singapore Management University
Marie-France Waxin, American University of Sharjah
Reviewers
Randall Zindler, Lancaster University Management School
Sununta Siengthai, Asian Institute of Technology
Alice Kuan, Taylor’s University, Malaysia
A C K N O W L E D G M E N T S
25. 23
Readers worldwide use Gary Dessler’s Fundamentals of Human Resource
Management, Human Resource Management, and Framework for Human
Resource Management in a total of more than 10 languages and international
editions, including Russian, Spanish, French, Arabic, Thai, Greek, and Chinese.
Dr. Dessler’s other books include Winning Commitment: How to Build and Keep
a Competitive Workforce, and Management: Modern Principles and Practices for
Tomorrow’s Leaders. He has published articles on employee commitment, leader-
ship, supervision, human resource management practices in China, and quality
improvement in journals including the Academy of Management Executive, SAM
Advanced Management Journal, Supervision, Personnel Journal, and Interna-
tional Journal of Service Management.
Dr. Dessler served for many years as a Founding Professor in Florida Interna-
tional University’s College of Business teaching courses in human resource man-
agement, strategic management, and management. For the past few years, he has
focused on his textbook writing, research, and consulting and on giving lectures,
seminars, and courses around the world on modern human resource management
methods, maintaining positive employee relations and employee engagement,
strategic management, leadership development, and talent management.
Dr. Dessler has degrees from New York University, Rensselaer Polytechnic
Institute, and the Baruch School of Business of the City University of New York.
A B O U T T H E A U T H O R
27. 25
OVERVIEW:
IN THIS CHAPTER, WE WILL COVER . . .
■
■ What Is Human Resource Management?
■
■ The Trends Shaping Human Resource Management
■
■ The New Human Resource Management
■
■ The New Human Resource Manager
■
■ The Plan of This Book
MyLab Management
Improve Your Grade!
When you see this icon, visit
www.pearson.com/mylab/management for
activities that are applied, personalized, and
offer immediate feedback.
Learn It
If your professor has chosen to assign this, go to www.pearson.com/mylab/
management to see what you should particularly focus on and to take the
Chapter 1 Warm Up.
1
PART
INTRODUCTION
Managing Human
Resources Today
1
LEARNING OBJECTIVES
When you finish studying this chapter, you should be able to:
1. Answer the questions, “What is human resource management?”
and “Why is knowing HR management concepts and techniques
important to any supervisor or manager?”
2. Describe with examples what trends are influencing human
resource management.
3. Discuss at least five consequences such trends have for human
resource management today.
4. Explain what sorts of competencies, knowledge, and skills
characterize today’s new human resource manager.
5. Outline the plan of this book.
Source:
Mitar
Vidakovic/Shutterstock
28. 26 PART 1 • INTRODUCTION
INTRODUCTION
During her senior year at State University Mira was a merchandising intern for TJX, which
owns TJ Maxx and Marshalls, and after graduating joined its Store Leadership Pathway
program for intensive training; now she’s one week into her first management job, as
Assistant Store Manager for a TJ Maxx store on the East Coast. “How did your week
go?” asked Gladys, her Store Manager and mentor, over coffee. “I love it!” Mira said. “I
guess the only surprise is that I thought I’d spend almost all my time on merchandising
tasks like setting up displays to give our customers that real ‘treasure hunt’ experience.
But I’ve actually been spending over a third of my time on “HR” tasks like interviewing
prospective associates, training them, and letting them know how they’re doing.” “Get
used to that” said Gladys. “My experience was about the same, and now as Store Man-
ager I find I spend almost half my time on such tasks—including mentoring!”1
LEARNING OBJECTIVE 1
Answer the questions,
“What is human resource
management?” and
“Why is knowing HR
management concepts
and techniques important
to any supervisor or
manager?”
What Is Human Resource Management?
To understand what human resource management is, we should first review what
managers do. The TJ Maxx store is an organization. An organization consists of
people (in this case, people like sales and maintenance employees) with formally
assigned roles who work together to achieve the organization’s goals. A manager
is someone who is responsible for accomplishing the organization’s goals and who
does so by managing the efforts of the organization’s people.
Most writers agree that managing involves performing five basic functions:
planning, organizing, staffing, leading, and controlling. In total, these functions
represent the management process. Some of the specific activities involved in each
function include the following:
• Planning. Establishing goals and standards; developing rules and procedures;
developing plans and forecasts
• Organizing. Giving each subordinate a specific task; establishing
departments; delegating authority to subordinates; establishing channels of
authority and communication; coordinating the work of subordinates
• Staffing. Determining what type of people should be hired;
recruiting
prospective employees; selecting employees; setting performance
organization
An organization consists of people
with formally assigned roles who
work together to achieve the
organization’s goals.
manager
Someone who is responsible for
accomplishing the organization’s
goals, and who does so by manag-
ing the efforts of the organization’s
people.
managing
To perform five basic functions:
planning, organizing, staffing, lead-
ing, and controlling.
management process
The five basic functions of plan-
ning, organizing, staffing, leading,
and controlling.
Source: stylephotographs/123RF
29. CHAPTER 1 • Managing Human Resources Today 27
standards; compensating employees; evaluating performance; counseling
employees; training and developing employees
• Leading. Getting others to get the job done; maintaining morale; motivating
subordinates
• Controlling. Setting standards such as sales quotas, quality standards, or
production levels; checking to see how actual performance compares with
these standards; taking corrective action as needed
In this book, we will focus on one of these functions—the staffing, personnel
management, or human resource management (HRM) function. Human resource
management is the process of acquiring, training, appraising, and compensating
employees, and of attending to their labor relations, health and safety, and fairness
concerns. The topics we’ll discuss should therefore provide you with the concepts
and techniques you’ll need to perform the “people,” or personnel, aspects of man-
agement. These include
• Conducting job analyses (determining the nature of each employee’s job)
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries (compensating employees)
• Providing incentives and benefits
• Appraising performance
• Communicating (interviewing, counseling, disciplining)
• Training employees, and developing managers
• Building employee relations and engagement
And what a manager should know about:
• Equal opportunity and affirmative action
• Employee health and safety
• Handling grievances and labor relations
Why is Human Resource Management Important
to All Managers?
Why are the concepts and techniques in this book important to all managers?
Perhaps it’s easier to answer this by listing some of the personnel mistakes you
don’t want to make while managing. For example, you don’t want to
• Have your employees not doing their best
• Hire the wrong person for the job
• Experience high turnover
• Have your company in court due to your discriminatory actions
• Have your company cited for unsafe practices
• Let a lack of training undermine your department’s effectiveness
• Commit any unfair labor practices
Carefully studying this book can help you avoid mistakes like these.
Improving Profits and Performance More important, it can help ensure that
you get results—through people.2
Remember that you could do everything else
right as a manager—lay brilliant plans, draw clear organization charts, set up
modern assembly lines, and use sophisticated accounting controls—but still fail,
for instance, by hiring the wrong people or by not motivating subordinates. On
the other hand, many managers—from generals to presidents to supervisors—have
been successful even without adequate plans, organizations, or controls. They were
successful because they had the knack for hiring the right people for the right jobs
and then motivating, appraising, and developing them. Remember as you read this
book that getting results is the bottom line of managing and that, as a manager,
you will have to get these results through people. This fact hasn’t changed from
the dawn of management. As one company president summed it up:
human resource management
(HRM)
The process of acquiring, training,
appraising, and compensating
employees, and of attending to
their labor relations, health and
safety, and fairness concerns.